Magnesia

Latest News

The UK-based refractories producer said that its earnings are on course to meet its full year guidance for 2015, but warned that a return to overall growth in the steel market is not expected before 2017. No mention was made of Vesuvius’ failed bid to buy British rival Morgan Advanced Materials, but indications are that market observers have lost interest in the deal.

Both magnesia-carbon bricks and rare earth oxides recorded high qualification rates when assessed against national quality standards. The tests are designed to improve the overall value of Chinese output of these products and encourage better manufacturing practices and volume control.

The Canadian explorer has engaged Tipi Mountain to evaluate the impact its project could have on the heritage and environmental character of its site in southeast British Columbia, but anticipates receiving the approvals necessary to commence commercial operations by the end of next year.

The UK-based refractories producer said that its earnings are on course to meet its full year guidance for 2015, but warned that a return to overall growth in the steel market is not expected before 2017. No mention was made of Vesuvius’ failed bid to buy British rival Morgan Advanced Materials, but indications are that market observers have lost interest in the deal.

Features

With overall and specific consumption of refractories in the steel industry on a downward trend, producers of refractory and raw materials are keeping a keen eye on potential pockets of growth and wider trends in the market. IM spoke to Octavio Pereira Lopes, CEO of leading Brazilian refractory materials producer, Magnesita, to discover his views on the industry.
Josie Shillito, Reporter

With a production history dating back to 1900, Russian refractories producer Magnezit Group has been exporting materials throughout its business life. The company is stepping up capacity and increasing the range and quality of its products and its CEO, Sergei Odegov, told IM that Magnezit expects to be a competitive supplier well beyond the CIS within the next few years.

Modest end market growth and the gradual appearance of new competitor products for magnesium hydroxide-based fire safety solutions are unlikely to scupper the expansion of this market before 2019, IM discovers.

With declining refractories consumption in key consuming sectors like steel and cement manufacturing, the balance of supply against demand is worrying many in the magnesia industry. Josie Shillito, Reporter, looks at the global trading picture and examines how magnesia companies are shifting their positions to adjust to new market dynamics.

Market Brief

Magnesia is the term for magnesium oxide (formula: MgO). Magnesia is produced by mining and processing mainly the hard rock mineral, magnesite, which occurs in two main forms: cryptocrystalline and crystalline.

Rarely, magnesia may be produced from other hard rock minerals such as dolomite, brucite, huntite, and serpentinite.

Another commercially important source of magnesia is from chemical processing of seawater and magnesia-rich brines, which produces what is sometimes referred to as synthetic magnesia.

The source of the magnesia determines critical chemical and physical characteristics of the derived magnesia, such as MgO purity (ranges low to high, 85%-99% MgO), ratio of CaO:SiO2, bulk density, and magnesia crystal size.

Supply

The worlds total resource of magnesite, the main source of magnesia, is about 13bn tonnes. Six countries host 92% of this, in descending order: China (26%), North Korea (23%), Russia (21%), Slovakia (10%), Australia (7%), and Brazil (5%).

World magnesia production (derived from the magnesite) is about 8.5m. tpa, and is dominated by China (49%). Other leading producers include Austria, Brazil, Greece, Russia, Slovakia, Spain, and Turkey.

World syntheticmagnesia production (derived from seawater, brines) is about 925,000 tpa, from Brazil, Japan, Mexico, the Netherlands, Norway, Republic of Ireland, Russia, South Korea, and the USA.

Each end use requires different specifications of the preferred magnesia form, so there are many different grades of magnesia on the market. Certain magnesite deposits are better suited to produce certain magnesia grades than others.